§ 23-96-117 — Detection and prevention of insolvencies or impairments

Arkansas § 23-96-117

• Jurisdiction: Arkansas
• Title: 23

Text

To aid in the detection and prevention of member insurer insolvencies or impairments: (1) The Insurance Commissioner shall: (A) (i) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member insurer: (a) Revocation of license; (b) Suspension of license; or (c) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors. (ii) The notice shall be mailed to all commissioners within thirty (30) days following the action taken or the date on which the action occurs; (B) (i) Report to the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association when he or she has taken any of the actions stated in subdivision (1)(A) of this section or has received a report from any other commissioner indicating that any such action has been taken in another state. (ii) The report to the board shall contain all significant details of the action taken or the report received from another commissioner; (C) Report to the board when he or she has reasonable cause to believe from any examination, whether completed or in process, of any member insurer that the insurer may be an impaired insurer or insolvent insurer; and (D) (i) Furnish to the board the National Association of Insurance Commissioners' Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. (ii) The report and the information contained therein shall be kept confidential by the board until such time as made public by the Insurance Commissioner or other lawful authority; (2) The Insurance Commissioner may seek the advice and recommendations of the board concerning any matter affecting his or her duties and responsibilities regarding the financial condition of member insurers, insurers, or health maintenance organizations seeking admission to transact business in this state; and (3) Upon majority vote, the board may: (A) (i) Make reports and recommendations to the Insurance Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in this state. (ii) The reports and recommendations are not public documents; (B) Notify the Insurance Commissioner of any information indicating any member insurer may be an impaired insurer or insolvent insurer; and (C) Make recommendations to the Insurance Commissioner for the detection and prevention of member insurer insolvencies.

Legislative History

Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Acts 1989, No. 444, § 12; 1997, No. 950, § 1.